(KRON) — First Republic Bank, headquartered in San Francisco, announced on Monday that it will be laying off a significant chunk of employees after the bank faced significant drops in revenue over the past year, according to a press release.

The bank is making plans to reduce expenses, including reducing its workforce by 20-25% in the second quarter of 2023. The press release states that executive officers at the bank will also be facing a compensation cut, and the bank plans to condense office spaces and reduce “non-essential” projects.

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The company says recent uncertainties in the banking industry resulted in a large outflow of cash. The closure of Silicon Valley Bank spooked many customers nearby, and First Republic Bank’s deposits were down $173.5 billion by March 9 when compared to the end of 2022.

“With the stabilization of our deposit base and the strength of our credit quality and capital
position, we continue to take steps to strengthen our business. We remain fully committed to serving our communities, and we are grateful for the ongoing support of our clients and colleagues.” — Jim Herbert, Founder and Executive Chairman, and Mike Roffler, CEO and President of First Republic

This is a developing story. Please check back for updates.